Absolutely zero credit

[wa3more]

OP,

what are you trying yo accomplish here ? Why are you in rush to increase score ?

I would not go crazy getting more cards ? Do you have savings account ? About how much is in it ?

Keep it simple, use one card for now, learn  to save.

Credit cards have a habit of getting MOST people in trouble and should come with a warning - This product may be dangerous to your wealth.

[Anonymous]

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@EAJuggalo wrote:

For optimum scoring it is 3 revolving lines of credit and one installment.  So 3 cc's are the easiest way to get those, for the installment lots of things will work:  Fingerhut, SSL, Auto Loans, Mortgage.  If you have a car loan in your name you don't need the SSL.

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3 lines reporting a balance, and installment paid to less than 10% of principal value. As far as I know FICO doesn't care how many cards you have beyond it affecting AAoA, etc. 

[Anonymous]

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@wa3more wrote:

OP,

what are you trying yo accomplish here ? Why are you in rush to increase score ?

I would not go crazy getting more cards ? Do you have savings account ? About how much is in it ?

Keep it simple, use one card for now, learn  to save.

Credit cards have a habit of getting MOST people in trouble and should come with a warning - This product may be dangerous to your wealth.

---

There is no rush, but I want to do it as efficiently as possible. Time and money wise so that I can have some aged accounts. I'm 25 with ZERO credit so I feel i'm a bit behind. Right now my plan is to basically take Gemini's and TYDAWG's advice. I currently have the unsecured CC, I am going to open a SSL of $500 then that that "loaned" money to open a Secured CC and take money from my saving to do the "gemini effect" on my SSL and pay it down to 10%. I haven't had the need for credit cards as of now so I don't see myself really needing them in the future. I will set up a couple auto pays (netflix, hulu, cellphone) on the cards but not carry them in my wallet. 

[wa3more]

oh ok. Don't feel like you are behind. You are 25 and are thinking intelligently.

Just stick to using the unsecured card and have disipline. Don't be a slave to any credit score. Less is more here.

[Anonymous]

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@Anonymous wrote:

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@wa3more wrote:

OP,

what are you trying yo accomplish here ? Why are you in rush to increase score ?

I would not go crazy getting more cards ? Do you have savings account ? About how much is in it ?

Keep it simple, use one card for now, learn  to save.

Credit cards have a habit of getting MOST people in trouble and should come with a warning - This product may be dangerous to your wealth.

---

There is no rush, but I want to do it as efficiently as possible. Time and money wise so that I can have some aged accounts. I'm 25 with ZERO credit so I feel i'm a bit behind. Right now my plan is to basically take Gemini's and TYDAWG's advice. I currently have the unsecured CC, I am going to open a SSL of $500 then that that "loaned" money to open a Secured CC and take money from my saving to do the "gemini effect" on my SSL and pay it down to 10%. I haven't had the need for credit cards as of now so I don't see myself really needing them in the future. I will set up a couple auto pays (netflix, hulu, cellphone) on the cards but not carry them in my wallet. 

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Not only are you not "behind" you are wayyy ahead of the game than most (me included! I am 50 and just starting to learn how to do this properly) - I wish I would have had the information available (like here), willing participants to answer questions and provide information and knowledge based suggestions/direction (like here), when I was your age. I am continually grateful and in awe of this willingness of people to share here! You have found the right spot!

If you continue to study this forum, lay out a strategy and a plan that fits your goals (as it appears you have begun), you will be able to open doors and utilize credit in a fashion that will raise your quality of life so much more in the "near" future, than not having the options that "GOOD/GREAT" credit offers.

The lesson I missed over the years and I think I am learning now...obtain the credit based on the rules  proven guidelines and strategies laid out in this forum, but DON'T use it, other than within the strategy for building (i.e. if you have the cash in your hand and would spend it on bills or something anyway...add the step of running it through your card and paying the CC with the cash. Over time the rewards look to be incredible, as opposed to not doing it this way.

I am still at the beginning stages myself...your post inspires me! Thank you so much for sharing here!

And with what you learn and apply, you may be able to help your parents learn down the road (how cool would that be!)...it can go both ways, and results have a tendency to get people interested (even parents)...

One suggestion - Change your screen name! You are WAYY more than "Nothing" and well on your way! 

[wa3more]

I agree with liquid. I'm 58 and lost job, business and got divorced im 2009 . Credit was so bad my kids would not lend me money.

Now i only have mortgage and 1 credit card and have 830+ scores. Change name ,your are not behind. keep it simple. Have disipline. You will be ok.

[EAJuggalo]

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@Anonymous wrote:

3 lines reporting a balance, and installment paid to less than 10% of principal value. As far as I know FICO doesn't care how many cards you have beyond it affecting AAoA, etc. 

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No, three open lines and only one reporting a balance.  Ideally you want more than half of your cards reporting $0 and one reporting less than 9%.

[Anonymous]

I have to admit the name Self Lender, hadn't rung a bell for me....Then I looked at it..... And

From what I can tell, it just seems to be a 'credit builder' loan similar to products offered at CUs, small community banks etc...

I just wanted to clarify, that after looking at it, it isn't horribly worse than other like products...Where the applicant CANNOT come up with their own funds to deposit in an account to secure a SSL.

Some CUs use the term 'credit builder' loan meaning this EXACT product....Where the borrowed funds are immediately placed in a savings instrument...So in essence and to be FAIR to Self Lender, what they did was to take a sometimes difficult to find product (for some) and offer it widely.

I say for some because if you google it, you can find plenty of institutions that will offer basically the same product BUT again to be fair, many of the CUs etc have restricted membership requirements or won't do apps unless one is in person etc....

The cost, difference between place to place varies of course but with such a small loan the dollar amounts are negligible IMO ($20-25 difference between one vendor to the next at most, overall)

Again, I not endorsing Self Lender but I wanted to clarify what set me off prior was the
'pay this ONE thing for a YEAR to gain a 600 score'
That's more so why I went bananas 😊

In taking a look at what Self Lender actually does (again if it's true and I have no reason to think they aren't legit, they've got decent backing and use a legit bank out of Austin TX) I can't poo poo what they are doing because it has been done for years w/o a hitch elsewhere

Again, all the did was take it national and want to be THE place vs just a CU or a community bank offering the exact same thing to their local clients.
I can't even call them out for the $12 set up because I know of CUs that charge $20 app fees (Hello, Unify formerly Western FCU😐) among others...Point being they and their pricing is within the normal, without question.

* The debate can be SHOULD a person who can't or doesn't have the money to secure a loan actually use such a product if they can't save the money themselves....Which is a different issue, that isn't an issue caused by the institution.

And my answer is it DEPENDS....

I absolutely could get behind a person FORCE feeding themselves to SAVE money, which also happens to build themselves a bit of credit by doing so

For some that additional pressure, can be exactly what the doctor ordered to make them 'answer' the bell...
Got zero problem with a person, forcing themselves to build a mini emergency fund ZERO, especially as seeing the VAST majority of people in our country just haven't built the habit of actually stashing away a few bucks every month/paycheck for a rainy day.

If this type product builds that skill, while building credit...Well you know how I feel about Gemini effects 😎 2 for 1 baby

Again, at the end of the day it's basically just slapping money in a savings, of course minus some fees, whatever when one takes into account that a bank'may' have charged $3-5/mo to have an account it's about a wash, especially seeing in today's world that, that little amount of money wouldn't have gain much if ANY % anyway but the credit juice gained is way more valuable than the .50 cents of possible% earned sitting in an account.

As mentioned, the main bonus here is the applicant doesn't come up with any funds upfront, which can be very important for some ppl

Example if it were going to take one 6 months to raise the money, well borrowing it allows the person to start building 6 months earlier

If it were my family I'd tell them take the loan 'save' $100 per month...$50 to 'pay' the loan the other $50 to save and open a secured CC in a few months, then a 2nd secured CC a few months later
Then 8-10 months in (on the same funds) you'd still have 3 TLs ...2 rev + the 1 installer and by then with the loan and CCs reporting getting the 3rd CC unsecured would not be a problem and it could wait a few months and be targeted....

Bottom line cats skin many ways, depending on the circumstance 😇

[Anonymous]

***UPDATE*** I now have one secured card, one unsec card, one share secured loan, and have had them for about four months and now my credit is 645... One thing though Gemini, when I paid more than what was due on the loan, it didn't change the payment. But other than that, I'm satisfied so far